GSK plc (GSK, GSK.L) has announced an updated agreement with Chongqing Zhifei Biological Products Ltd. regarding the distribution of its shingles vaccine, Shingrix, in mainland China.
This revised agreement, amending a prior contract from October 2023, outlines that Zhifei is expected to purchase Shingrix over a designated period. The total potential value of these transactions could reach £2.3 billion for GSK, calculated at current exchange rates, throughout the six-year span from 2024 to 2029. Notably, the earlier requirement for minimum purchase levels has been eliminated.
The updated agreement extends Zhifei's exclusive rights to import, distribute, and co-promote Shingrix in mainland China by an additional eight years, now covering until 2034, with revised expected volumes.
Moreover, under this new arrangement, Zhifei will collaborate solely with GSK to potentially market a respiratory syncytial virus vaccine in mainland China, pending regulatory approvals. This collaboration will initially last for ten years.
Luke Miels, GSK's Chief Commercial Officer, commented, "This revamped agreement with Zhifei solidifies our partnership, allowing us to navigate near-term macroeconomic challenges while expanding our reach of innovative adult vaccines in China over the long term."
